Mitolo Family Farms buys Thomas Foods International’s potato business

South Australian potato wholesaler Mitolo Family Farms has purchased Thomas Foods International’s fresh-produce arm.

Frank Mitolo says the purchase of Thomas Foods International’s fresh potato business adds 4000ha to the Mitolo Group’sSA footprint. Picture: MATT LOXTON

CONSOLIDATION of Australian farming businesses continues apace following Mitolo Family Farms’ purchase of Thomas Foods International’s fresh potato business.

Pending an Australian Competition and Consumer Commission review, Mitolo Farmily Farms’ purchase of TFI’s Fresh Produce business — for an undisclosed sum — will be finalised before August.

The deal follows talks initiated by Mitolo, Australia’s biggest potato wholesaler, at the beginning of the year about possible collaboration between the two family-owned businesses, both based in Virginia, in South Australia.

Mitolo managing director Frank Mitolo said discussions with TFI chief executive Darren Thomas early this year quickly progressed to talk of a sale.

The purchase involves TFI’s packing operation in Virginia, about 4000ha of potato growing farmland and contracts with Woolworths, ALDI, Coles, Costco and buyers from South East Asia and the Middle East.

“The packing operation in Virginia is not far from us, which was an important part of the acquisition. The farms we purchased work well within our existing farming operation,” Mr Mitolo said.

“We just have to work through how we integrate the business now and retrain as many staff as we can.”

Mitolo Family Farms became Australia’s fresh potato powerhouse following its purchase of Oakville Produce from administrators in 2016, which saw turnover and staff numbers double.

The company now manages 51,000ha and 700 staff. It was established by Frank’s father, Bruno, in 1972, who is still closely involved.

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